Social Due Diligence Report

Project Number: 48424-002 June 2020

KAZ: CAREC Corridors 1 and 6 Connector Road (Aktobe–) Reconstruction Project

Prepared by the "NC "KazAutoZhol" JSC for the Ministry of Industry and Infrastructure Development, Republic of and the Asian Development Bank.

This social due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status or any territory or area. 48424-002 (Loan 3416) CAREC Corridors 1 and 6 Connector Road (Aktobe-Makat) Reconstruction Project Construction of “ Bypass”

Social Due Diligence Report

On the Construction of Dossor Bypass (Km 799 of A 33 and Km 507 of A-27)

Project Management Consultant “NC “KazAutoZhol” JSC

Committee for Roads, Ministry of industry and infrastructural development of the Republic of Kazakhstan

June 2020

1 CONTENT 1. INTRODUCTION………………………………………………………………………………………………….5 2. REPORT SCOPE AND PURPOSES……………..………………………………………………….………… 7 3. METHODOLOGY OF INSPECTION PROCESS …………………………………………………………..… 8 4. CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE ………………………….… 8 5. GRIEVANCE REDRESS MECHANISM…………………..…………………………………………...…..… 10 6. INSTITUTIONAL IMPLEMENTATION AND CONTROL MECHANISMS………………..………….……. 12 7. RESULTS AND DISCUSSIONS ……………………………………………….…………..………….……13 8. CONCLUSIONS AND RECOMMENDATIONS…………………………………………………………..….. 16 ATTACHMENT 1. SOCIAL SURVEY RESULTS………………………………………………………...………17 ATTACHMENT 2. LAND ACQUISITION DOCUMENTS FOR THE PROJECT…………………...…………21 ATTACHMENT 3. OFFICIAL INFORMING PAP…………………………………………………………….…..29 ATTACHMENT 4. MINUTES AND LIST OF PARTICIPANTS OF PUBLIC CONSULTATIONS HELD IN 2019…………………………………………………………………………………………..…………………….…36

ATTACHMENT 5. OFFICIAL NOTICE ABOUT PUBLIC CONSULTATIONS ………………………..……..47

ATTACHMENT 6. PHOTOS MADE DURING PUBLIC CONSULTATIONS………...... ……………………..51

ATTACHMENT 7. GRIEVANCE REGISTRATION FORM ……………………………………………………..53

2 TABLES

Table 1 Main parameters of Dossor Bypass Way construction project…………..…....7

Table 2 Information of Public consultations…………………………………………...….9

Table 3 Summary of issues / questions raised during public consultations in the community………………………………………………………………………....10

PICTURES

Picture 1: Bypass way layout scheme…………..………………………………………… 6 Picture 2. Photo of production base “Dank” LLP…………………..…….………………..13 Picture 3. Location of cattle pass construction ..…………………..…….………………..14 Picture 4 . Land plots for bypass construction ...…………………..…….………………..15

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ABBREVIATIONS

ADB Asian Development Bank AH Affected household CFR Committee for Roads CSC Construction Supervision Consultant EA Executing Agency GRC Grievance Redress Committee IDB Islamic Development Bank DDR Due diligence report JSC Joint-stock company KazAutoZhol RB “NC “KazAutoZhol” regional branch LARP Land acquisition and resettlement plan LLP Limited liability partnership NGO Non-governmental organization NJSC Non-commercial joint-stock company PAP Project affected person PMC Project Management Consultant ROW Right-of-way SPS Safeguard Policy Statement SSMR Social safeguard monitoring report

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1. INTRODUCTION 1. The Committee for Roads of the Ministry Industry and Infrastructural Development of the Republic of Kazakhstan (CFR) is implementing CAREC Corridors 1 and 6 Connector Road (Aktobe-Makat) Reconstruction Project with funding from the Asian Development Bank (ADB) under Loan 3416. 299 km of a two-lane highway connecting Aktobe and Makat will be reconstructed to category II standard and transport system operation will be improved with better road traffic safety and logistics effectiveness. The project was approved on 26 August 2016. Implementation is ongoing. 2. In spring of 2019, due to appeal from local population regarding the safety of passage through Dossor (Lot 7, Section km 487 - km 504) and due to restrictions for transportation of heavy and oversized loads connected with road category at this section, CFR began to consider options to ensure safety for local population and make transportation of heavy and oversized loads possible. 3. Dossor Bypass Way is required to solve the safety issues of traffic passing through this village, as this site is mainly used for transportation of oversized and heavy loads of oil refining companies in the region, also to reduce traffic flow at this road section connected with internal traffic of local vehicles. During the transportation of such loads, local population feels inconvenience due to traffic jams and unsafety of such transportation for them. 4. The road “Dossor Bypass Way” passes through an open area and crosses salt-affected sections from PK18+60 to PK21+70, from PK36+76 to PK38+97 and from PK47+30 to PK48+10.00, connects republican roads and has parameters of technical category II. 5. On 5 July 2019, CFR instructed the Contractor to prepare the design for Dossor Bypass Way, and assess the social and environmental impact of the bypass. It is expected that Bypass Way will be included in Lot 7 Contract, therefore the works at this Lot will require time extension and increase in quantities. Commencement of work for this bypass is conditional to ADB’s review and approval of the social due diligence report (SDDR) confirming absence of IR impacts or the approval and implementation of a land acquisition and resettlement plan (LARP) in case there are IR impacts from the proposed construction. 6. Akimat issued a decree (State Act No. 001734) which allocated 23,200 ha of state reserve land under cadastral number 04-064-007-2482 for the construction of bypass way to Dossor and registered (No.590) by Makat District Department of Land Cadastre and Real Estate on 10 September 2019. Documents are provided in Attachment 2.

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Picture 1: Bypass way layout scheme

7. There are 2 junctions in the design, at the beginning and end of the road. Road pavement within the curves, acceleration and deceleration lanes on the existing road is the same as the main designed road. At the connection of edges of the main and secondary roads the method of ranging of a curvature in the form of a circular curve with symmetric curves – clothoids, its main purpose is prevention of instant occurrence of the centrifugal force causing skidding of the car having unsafe impact on drivers and passengers. The connection of edges and carriageway of the main and secondary roads is made by the circular curve R=25 m. To provide deceleration and acceleration of cars leaving the general traffic flow and entering it, there will be speed change lanes and horizontal direction markings. All the designed junctions have been approved by the Traffic Police Department of the Ministry of Internal Affairs of the Republic of Kazakhstan. 8. The road axis has 4 turn angles. There will be a cattle pass at PK 09+00.00 made by precast concrete box culvert 4.0 m x 2.5 m for passing animals and small-sized equipment. There will be devices for underground crossing of communication lines at PK 0+55,60 and PK 1+27,00 according to technical specifications of the operating organizations of these communication lines. Mesh fences will be installed along the road at a distance of 15 m from the carriageway edge in order to ensure traffic safety and not to allow animals on the road. 9. The bypass connects the republican roads A27 “Aktobe-Atyrau-border of the Russian Federation (Astrakhan)” and A33 “Dossor- -Beineu-Sai-Utes-Shetpe-Zhetybay- Aktau”, it passes through the open area, through the territory of Makat district of .

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Table 1. Main parameters of the bypass road

Standard

Parameters SP RK 3.03-101-2013, project SN 3.03-01-2013

Road category II II

Design speed (km/hour) 120 120

Number of traffic lanes 2 2

Traffic lane width, (m) 3,75 3,75

Carriageway width, (m) 7,5 7,5

Shoulder width (m) 3,75 3,75

Width of strengthened shoulder line (m) 0,75 0,75

Roadbed width (m) 15 15

10. The road length is 5,516.83 meters, the construction length is 5.5 km. The design provides an access road to the production base “Dank” LLP at PK 14+00 on the right side with a length of 50 m and parameters of technical category IV. The longitudinal profile line is designed along the axis of the designed road. The embankment height is set based on that the road is free of snow drifts and the top of road pavement is higher than the level of surface and ground waters in low places. According to clause 7.3.11 of SNIP RK 3.03- 101-2013*, the embankment height on the road sections passing through the open area, where free of snow drifts is not less than 1.2 m (on the edge). The accepted vertical concave and convex curves provide the required minimum visibility distance of the oncoming car and their movement by design speed. Rest areas, bus stops are not provided according to clause 14 “Particular condition” of the term of reference on preparation of design and estimate document dated February 28, 2020.

11. There are no existing artificial structures on the designed site. The working design provides the construction of 9 precast concrete culverts, among them: diameter 1.5 m - 8 nos./224.59 m; box culvert 4 x 2.5 m - 1 no./28.07 m.

2. REPORT SCOPE AND PURPOSE 12. This report reflects the main conclusions and recommendations of the due diligence activities carried out during October 2019 - March 2020 for the construction of bypass way of Dossor village of Atyrau region, Atyrau-Kandyagash road. The main purpose of this social due diligence : (i) verify if the proposed bypass will cause involuntary resettlement or other social impacts. Find potentially affected people as a result of project implementation. Determine type of impact (negative or positive) on affected со 7

people as a result of project implementation; (ii) review the land allocation records to confirm the status of the land; (iii) solicit the views of the local population on the proposed bypass; (iv) propose measures to address impacts and concerns noted from the assessment; and, (v) recommend the issuance of no-objection for allowing works for the bypass in case there are no IR impacts from the proposed works.

3. METHODOLOGY OF INSPECTION PROCESS 13. For the construction of bypass at Dossor village of Atyrau region, Atyrau-Kandyagash road, the following approaches and methodology were adopted for land acquisition and resettlement inspection: I) Review of information, including the detailed design submitted by the Committee for Roads (CFR), Ministry of Industry and Infrastructural Development of the Republic of Kazakhstan and KazAutoZhol; II) Arrange visits to the proposed bypass in October 2019 and March 2020; III) Personal meetings with representatives of local authorities (Makat District Akimat), PMC, CSC, KazAutoZhol RB, “Injener Project Stroy" LLP, Atyrau Regional Branch of “State Corporation "Government for Citizens" NJSC (the list of persons met is provided in the Attachment 1); IV) Study of documents, in particular, decrees and acts of Makat district Akimat of Atyrau region about provision of permanent use land from state fund for the project implementation; V) Public consultations in Dossor, sample survey of Dossor villagers, participation in discussion of questions of public consultations in August and October 2019. Minutes and attendance list are provided in the Attachment 3. 14. Additional inspection was conducted on the site through meetings with local executive bodies, review of documents and interview with local people in October 2019 and March 2020. 4. CONSULTATION, PARTICIPATION AND INFORMATION DISCLOSURE 15. Pursuant to SPS ADB (2009), affected people should be consulted. The Constitution of the Republic of Kazakhstan guarantees the right of people to access information about the activities of state and municipal bodies in the manner prescribed by the Constitution.

16. In accordance with the above requirements, public consultations regarding the project implementation were held. Currently, the detailed design of the road is approved by the State Expertise to confirm the compliance of working design with the requirements of national road construction standard. The design is final (a positive conclusion of “State Expertise” received on 30.03.2020) and no further changes are expected in it.

17. In August 2019, public consultations were held at the preliminary design preparation stage. PC were in Dossor village, Makat district of Atyrau region in order to provide key information about the proposed project with special emphasis on its impact and issues of

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concern during road construction and operation period. Table 3 below provides information on the issues raised during the public consultations. In total, more than 67 participants attended two consultations, including representatives of state bodies, enterprise owners located near the designed road, and civil society.

18. Public consultations were announced two weeks before the meetings through local authorities and TV announcement, and one week before through an announcement in local newspaper “Maqat tynysy”. The announcement materials are provided in the Attachment 5. Between 25 and 42 people participated in public consultations in Dossor, among them 23% is women.

Table 2. Gender disaggregated data on participants of public consultation, including date and venue

Participants of public consultation Venue Date men women total

16 August Dossor Akimat, assembly hall 19 6 25 2019

10 October Dossor Akimat, assembly hall 32 10 42 2019

Total 51 16 67

Note: In addition to the participation data specified in Table 2, the following people attended PC: the national social safeguard consultant of the ADB, from the CSC – social safeguard specialist and Road Engineer, from the Contractor - 4 specialists, from the project organization – manager and1 representative of NC “KazAutoZhol” JSC.

19. PC participants were informed about the project preparation, implementation deadline, measures on mitigation of environmental impact, results of social audit and grievance redress mechanism (GRM). Drawings, cross section were provided which printed on maps and showed on screens for the PC participants. The Manager of project organization introduced the project and National resettlement consultant of the ADB Kazakhstan introduced the social safeguards and the GRM. The relevant representatives of local bodies participated and opened PC in Kazakh and Russian languages (details are in the Attachment 4). During the consultations, information brochures describing the main conclusions of project and GRM in Russian and Kazakh languages were given.

20. A discussion with local community members was suggested after the presentation to collect proposals, questions and issues of local population. All communities were interested in the project time, as the road will be very beneficial for all participants, also the location of cattle pass, and passing of heavy vehicles through inside village road.

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Table 3. Summary of issues / questions raised during PC in the community

Venue and Issues and questions date

Dossor The participants were interested in the project time, use of inside village roads, cattle pass location and how the prohibition of heavy transport will be monitored. 16.08.2019 Dossor Cattle pass location, employment opportunities for local population, and no use of the inside village road when transporting material from the borrow pit, 09.10.2019

21. The project information is presented on the information sheets of local authorities of Dossor with the contact information of relevant coordinators responsible for GRM at the project implementation stage.

5. GRIEVANCE REDRESS MECHANISM 22. Grievance redress mechanism (GRM) aims to provide an effective and systematic mechanism for the project in receiving and responding to queries, feedbacks and complaints from affected persons, other key stakeholders and general public. Any person impacted by or concerned about the project activities has the right to participate in the GRM, should have the easy access to it, and be encouraged to use it. The proposed GRM does not replace the public mechanisms of complaint and conflict resolution envisaged by the legal system of the RK, but attempts to minimize use of it to the extent possible.

23. Overall responsibility for timely implementation of GRM lies with on the EA. The Consultant’s team includes a Social Safeguards Specialist, who keeps a register of complaints and appeals received by the Consultant. The staff of Lot 7 Contractor has a designated Grievance Coordinator who keeps track of complaints received by them and resolves them within their competence and in cooperation with the Consultant’s Social Safeguards Specialist.

24. The Construction Supervision Consultant and Contractors are responsible for the GRM process on site. Relevant region, district and village Akimats, who are mandated by law to perform grievance redress related tasks, and mediators / non-governmental organizations (NGO), who are involved in facilitating amicable resolution of grievances are also included in GRM.

25. The project GRM envisages two levels of grievance resolution for the road sector projects implemented under the supervision of the CFR: Grievance Redress Committees (GRC) at regional and central (Nur-sultan) levels. GRCs are usually composed of members nominated from CFR, PMC, CSC, Akimats, Contractor and etc. This GRM is similar to the existing one in “Aktobe-Makat” project. (Contact details of Grievance redress centres are provided in the Attachment 7)

GRM: Regional level 26. At the first stage, the resolution of grievance will be attempted through GRC at regional level through the following steps.

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27. Grievance registration: complainants or concerned individuals can visit, call or send a letter or e-mail or fax to village Akimat, grievance coordinator, GRC coordinator at “NC KazAutoZhol” JSC regional branch. The Contractor will install a special transparent box. in the Akimat of Dossor village, indicating the contact details of the persons responsible for receiving and considering applications. The local population, as well as the workers involved in the project, will have the opportunity to reach out to the CSC’s Social Safeguards Specialist. Also, applicants can contact Grievance Coordinator in the regional branch of “NC “KazAutoZhol” JSC, where the transparent box will be installed as well. Receipt of grievances lodged in person, via phone, through a letter or e-mail or fax will be acknowledged. The GRC at the regional level also considers the anonymous complaints, in case the complainant refuses to provide contact details or no contact information is available in the grievance received by e-mail / fax. Grievances will be recorded in a standard format, provided in the Attachment 7. Grievance processing: Queries and complaints that are clarified and resolved at the intake point are closed immediately. Cases requiring further assessment and action are considered by the GRC at regional level. The GRC at regional level: (i) holds meetings on bi-monthly basis, however special meetings for particular cases can be arranged as necessary and (ii) discusses the grievance case within ten working days and recommend its settlement to parties. GRC coordinator at regional level circulates relevant information among the members of GRC, prepares Minutes of GRC meeting and progress reports, and ensures that actions and decisions are properly documented.

28. Feedback provision: Receipt of grievances lodged in person or via phone will be acknowledged immediately. Receipt of grievances received through a letter or e-mail or acknowledged through a letter / e-mail / fax within 3 working days upon receipt by GRC coordinator at regional level. In case the grievance is not related to project activities or impacts generated due to the project implementation and cannot be considered under this GRM Guideline, the feedback will be provided to the complaining party specifying to which entity (village / district / regional level Akimat, as relevant) it has been forwarded.

29. If grievance was resolved at regional level, the complaining party will be informed of the outcome. If grievance was not resolved at the regional level and was passed to the GRC at the central level for consideration and resolution, appropriate information will be provided to the complaining party, including the date when the case was passed to GRC at the central level and the date by which the outcome at the central level is expected.

GRM: Central level 30. After unsuccessful consideration of grievance by the GRC at the regional level, complaint resolution will be attempted at a central level through following steps.

31. Grievance processing: If grievance cannot be resolved by the GRC at the regional level, it will be forwarded for consideration by the GRC at the central level, including all relevant documents. The GRC at central level: (i) holds meetings on monthly basis, however special meetings for particular cases can be arranged, as necessary; and (ii) discusses the grievance case within twenty working days and recommend its settlement to parties. GRC coordinator at central level circulates relevant information among the members of GRC, prepares Minutes of GRC meeting and progress reports, and ensures that actions and decisions are properly documented.

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32. Feedback provision: If the grievance was resolved, the complaining party will be informed on the outcome of grievance resolution. If grievance was not resolved by the GRC at central level, appropriate information will be provided to the complaining party, including details why the case was not resolved, as well as recommendation to seek for resolution within the RK legal system.

33. For anonymous grievances or in cases when the complainant refused to provide contact details, the information on status of grievance redress and outcomes of resolution process will be posted on the information boards of relevant regional branch of “NC KazAutoZhol” JSC and relevant village / district / regional Akimats.

34. The GRM was presented during public consultation in 2015 and 2018. The information of grievance resolution will be summarized in EA/CFR progress reports to be submitted to the ADB.

35. In order to ensure effective functioning of the GRM, capacity building sessions for local authorities were held during public consultations in August and October 2019, as well as during a public survey and interviews with specialists from the Akimat of Dossor village in March 2020.

6. INSTITUTIONAL IMPLEMENTATION AND CONTROL MECHANISMS 36. NC “KazAutoZhol” JSC Atyrau regional branch (KazAutoZhol RB) will be the executive authority (EA) of project with overall responsibility for the project implementation. Currently the PMC has a social safeguard specialist, who conducts general activities of KazAutoZhol in transport projects financed by the ADB. KazAutoZhol RB with the support of local authorities and supervision consultants group: i) will publish the results of this report; ii) will monitor project activities during the project implementation phase; iii) will conduct additional public consultations.

37. The Construction Supervision Consultant will ensure continuous capacity building of social safeguard specialists of KazAutoZhol RB, and social safeguard specialists of Contractor regarding social safeguard topics, including, but not limited to, the GRM, local legal framework and SPS ADB (2009), consultations and information disclosure, impact assessment during construction period and etc.

38. KazAutoZhol RB with the assistance of local authorities, CSC and Contractor prepare semi-annual social safeguard monitoring reports (SSMR) and submit them to the CFR, for the following submission to the ADB for review by July 31 and January 31 each year during the project implementation phase. SSMR will be attempted through GRC at regional level through the following steps.

39. Grievance registration: complainants or concerned individuals can visit, call or send a letter or e-mail or fax to village Akimat, grievance will reflect all social safeguards related to issues that have occurred within the relevant time, including complaints received, resolved/unresolved, public consultation with minutes and feedback, details on project updates if any, concerns and corrective mitigation measures if any, skill development programmes, social safeguards for personnel and mobilization. SSMR will be published

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on EA and ADB websites after ADB approval. Corrective measures, if any, will be informed to relevant individuals and .

7. RESULTS AND DISCUSSIONS 40. Due to the implementation of Dossor Bypass, potential impact on the access of one legal entity which is currently undergoing bankruptcy proceedings was assessed. The legal entity is not affected by land acquisition since the bypass section passes 20 meters away from the coordinates of the base of this legal entity. This legal entity was assessed for potential impact based on results of an interview with the bankruptcy manager. During the interview, it was noted that there is a high probability that after the completion of bankruptcy procedures and the subsequent sale of the property, this infrastructure will be restored by the new owner. In the view of this, it is necessary to provide access to the designed road. 41. The design institute provided an access road, which was also agreed with this legal entity. The bankruptcy manager was notified about the planned works in close proximity to the legal entity’s base by a letter and was invited to public consultations held on 9 October 2019 in Akimat of Dossor village. An invitation letter and a response to it are provided in the Attachment 3.

Picture 2. Photo of production base “Dank” LLP, October 2019 42. There are no other buildings or business entities, including unauthorized users on this site. Land plots within the impact area of the bypass construction are included in the state land reserve fund. However, there are two large land plots previously used as uncontrolled dumpsite of solid waste. Survey of these sites and clarifications received during public consultations in Dossor village (presentation of Dossor bypass way project) from specialists of the municipal service of Dossor village of Makat district and official confirmation dated 12.07.19 from Makat District Veterinary Department about the со 13

absence of burial ground for cattle, burial sites for animals with anthrax, confirm that these areas are actually spontaneous and do not lie deep in soil layers. This fact was taken into account and included into the design certain work quantities on reclamation of these two sites, which fall under construction of “Dossor bypass way”. State Expertise RSE issued a positive conclusion No.01-0165/20 dated 30.03.2020 for the construction of bypass way of Dossor village, Makat district of Atyrau region. 43. During the site visits conducted in October 2019 and March 2020, no land use, including any unauthorized structures in the right-of-way, was observed. This was achieved by considering several design alternatives aimed at minimizing the impact on the livelihoods of Dossor village located nearby. 44. During the first public consultations on 16 August 2019, the community spoke about the need for a cattle pass, and one cattle pass was specified. Its location (PK 09+00.00) was agreed with the community and Dossor Akimat during the public consultations. This is caused by the need for local community to drive livestock through this site to the pastures located beyond the designed bypass road. Currently, the local community drives their livestock here. This fact was confirmed by Dossor Akimat, and photographic evidence was obtained for this section during the second public consultations on 09 October 2019.

Picture 3. Location of cattle pass construction 45. Households or people will not be affected on the allocated land. It is not necessary to clear the site as it is not occupied by any state agencies. As per the road design, a resolution on land allocation for permanent use was issued by the Makat District Akimat in 2019, according to which only lands of state reserve with a total area of 23,200 hectares will be allocated for the bypass. These are salt-affected lands that are difficult to cross even for

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vehicles with high off-road performance. Almost nothing grows there with very rare vegetation in some places.

Picture 4 . Land plots for bypass construction 46. The road section is located in Makat district of Atyrau region. The design makes provisions for legal registration of land acquisition prior to construction: - temporary acquisition for off-road borrow pits, passages for construction equipment, soil transportation roads, construction sites, parking for equipment. The required area of land acquisition is determined by the calculation and is given in the Summary sheet of lands to be acquired. - additional permanent acquisition to place construction units of the roadbed, speed change lanes. - Upon completion, the temporarily occupied land will be restored to its original condition. - The land acquisition has been agreed with all interested parties by the proper procedure according to the Land code of the RK. Land occupied for the road is presented by salt-affected areas. 47. Land allocated for construction purposes is the state reserve land, which significantly simplified the procedure of preparing land management plan for the project. During October 2019 and March 2020, inspection works were carried out to identify any potentially affected land owners, but it did not reveal any new land within the bypass impact area. 48. As of the inspection date, there were no outstanding complaints, which was confirmed during interviews with local authorities, as well as during public hearings held in August and October 2019, and public consultations in March 2020.

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8. CONCLUSIONS AND RECOMMENDATIONS 49. Based on the information gathered from different sources, such as: • Design documents, including decrees and acts of Makat District Akimat, Atyrau region, for allocation of lands for project implementation; • Personal meetings with representatives of local authorities (Makat District Akimat, Dossor village), PMC, CSC, regional branch of NC KazAutoZhol JSC, “Injener Project Stroy" LLP, as well as visits to the supposed site area; • Participation in public consultations in August and October 2019; The implementation of the Bypass of Dossor village will not require involuntary resettlement procedures. 50. This project meets the requirements of local population of Dossor village, who initiated it and reached out to CFR with this proposal. 51. The project has a positive social impact: (i) it not only partially relieves pressure on the road passing through Dossor village, but also preserves the environment of the village; (ii) it considers issues related to ensuring access of livestock to pastures; (iii) legal entity to be affected by the project will be provided with access to the road; (iv) the project will allow to solve the issue of spontaneous landfills, which has not been resolved over the past 25 years and is a source of negative impact on the population. 52. The Bypass of Dossor village may be recommended for the commencement of construction works, provided that the following conditions are met: (i) social safeguard specialist of PMC should be at the workplace full-time prior to the project commencement; (ii) training of social safeguards staff of KazAutoZhol RB and Contractor should be conducted prior to the commencement of construction works; (iii) an effective GRM proceeded at all stages of the project; ; (iv) regular and close monitoring of project activities, starting from project implementation, from submission of semi-annual report to the CFR and implementation of corrective actions, if any.

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ATTACHMENT 1 SOCIAL SURVEY OF THE RIGHT-OF WAY FOR THE ROAD Dossor Bypass Way: DETAILED CONCLUSIONS 1. The purpose of this Attachment is to provide details of the social survey process conducted during the project preparation phase in 2019-2020, with relevant conclusions. The attachment covers the following sections: (I) Survey methodology (II) Project location (III) Land acquisition (IV) Complaints I. Survey methodology The comprehensive survey was conducted as follows: a. Personal meetings with representatives of local authorities (Akimat of Makat district of Atyrau region), PMC, CSC, NC “KazAutoZhol” JSC Atyrau regional branch, “Injener Project Stroy" LLP

List of persons with whom meetings were held

No Name Organization Note 1 Zeinullina A. Social and environmental safeguards specialist, 08.08.2019 Project Management Consultant “NC “KazAutoZhol” JSC 2 Basharov Zh. Director, “NC “KazAutoZhol” JSC Atyrau regional 25.08.2019 branch 17.03.2020 3 Kurzhumova S. Head of department, “NC “KazAutoZhol” JSC 10.08.2019 Atyrau regional branch 4 Abilgaziyev A. Akim of Dossor village, Atyrau region 10.07.2019

5 Tazhibayeva A. Public utility Chief specialist of Dossor village, 10.10.2019 Makat district of Atyrau region 17.03.2020 6 Torebalayev M. Director, “Injener Project Stroy" LLP 05.07.2019 10.08.2019 10.10.2019 17.03.2020

b. Telephone conversation with the Manager “Dank” LLP According to the process: with a representative “Dank” LLP, the interview was conducted in the census form with the Manager appointed by the Liquidation Commission. Currently, Kuandyk Nurzhan has been appointed as the Manager, whose office is located in . It was not possible for him to come to the site in October 2019 and in March 2020 during the survey and study on the site of PAP. The interview was conducted by the phone at the appointed time. The interviewer was open and positive. There are still open questions about income and contributions to business development because the interviewer considers it a commercial secret. According to the content of interview: The interviewer noted that there will not be any impacts listed in the item 7 of the census form during

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construction of Dossor Bypass Way. Land plot about 5 ha is private property of the company and there is a State Act for this land issued by Makat district land relations department on 13.04.2011. There is no restriction on the ownership right for this land. The company owns this land plot for 9 years. As response to item 13 about expenditure for land improvement during the last 3 years, the interviewer noted that any examples of land improvement proposed in item above were not carried out by this company, as their business is not related to land. Land is not a source of income and there are a production base and laboratory on the site. The main activity is geophysical exploration of fields. They have been operating since 2011 and have licenses and permits in accordance with the legislation. But expenditures, noted by the interviewer, for structure/building improvement during the last 3 years as follow:

# Type of improvement Yes No 1 Extension / reconstruction + 2 Renovation / repair - 3 Infrastructure improvement + 4 Bank loan / credit - 5 Other (specify): built a hangar for storing equipment +

The company has invested its own funds for the above expenditures. As response to the question about acquisition, the interviewer noted that he was informed about Dossor Bypass Way construction project where land acquisition is not necessary and also, for convenience, the project includes the access road to the production base, which significantly improves the cost of this production base if he has to sell it. As response to the question about hired workers, the interviewer noted that the company had about 1200 permanent and temporary employees during its active operations. But at the moment the company has to suspend its activity due to the company problems. At the moment, there are 3 guards of the security agency for which has an agreement for the security of territory and property. There are no data about security guards. Regarding trees and crops, the interviewer answered that there is no such one on the territory. Regarding structures there is a hangar constructed in 2012 by metal structures. There is an electricity, water. But these communications are dismantled as there no work on the base. As response to the question about relocation of business due to the road construction, the interviewer answered that he does not know and does not think about it, as the base area is 50 meters away from the edge of project road and there is no reason to allocate his land plot. Moreover, they are ready to lease their equipment to the contractor, there is a canteen, a laboratory and area is fenced. They do not expect anything big from the project, only an opportunity to lease area to the contractor to improve their financial situation. The rental charge for the base could close their credit debts taken for business development. As response to the question about the project impact, the interviewer noted that there will be only positive impact. This is an improvement of environment in Dossor village, also the noise from the equipment as they will not enter to the village. As a recommendation, the interviewer noted it is necessary to provide environmental safeguards, information boards for the public, hot lines for contacting the contractor.

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c. Checking documents, in particular, decrees of Akimat about the permanent use of land for the project implementation

The Employer Committee for Roads, Ministry of industry and infrastructural development of the Republic of Kazakhstan, located in Nur-Sultan city, gave to the Contractor a term of reference No.13- 1231-7/2019 dated July 05, 2019 to prepare the design “Dossor Bypass Way”, and also to organize and conduct the work on assessment of social and environmental impact on the external environment due to the implementation of Dossor Bypass Way construction. It is expected that Bypass Way will be included in Lot 7 Contract, therefore the works at this Lot will require time extension and increase in quantities. Pursuant to the road project in 2019, there was the decree of Makat district akimat No.146 dated 03.09.2019 about land acquisition for permanent use, according to which there is only state land reserve under acquisition and have been received state act No.001734 for the right of permanent land use of 23,200 ha land, cadastral number 04-064-007-2482 for the construction of bypass way to Dossor and it was registered on September 10, 2019 No.590 by Makat district Department on land cadastre and real estate. Documents are provided in the Attachment 2. On March 17, 2020 a specialist was interviewed.

d. Reviewing Google earth from the road in Dossor village.

e. Site visit:

Summary of survey results conducted in October 2019:

Process: A questionnaire survey of Dossor villagers was conducted on October 10, 2019 before the start of public consultations and another part after the consultations. Totally 13 respondents were interviewed. 8 men and 5 women. Among men: 4 pensioners, 3 workers and 1 temporarily unemployed. Among women: 2 pensioners and 3 workers. The age of respondents are from 18 to 74.

Survey content: 77% of respondents said that they are informed about the construction project of Dossor Bypass Way, and 23% heard for the first time because they do not visit public events. 69% of respondents said that the implementation of this project will definitely improve access to infrastructure. It was also noted that the project will have a positive impact on the village due to reduced travel time. Usually there is a traffic jam in the village when passing heavy and oversized transports. During these times, the village remains without traffic and loads transported without traffic police escort often lead to road accidents in the village. Most of respondents noted that such kinds of transport worsen the road quality inside the village. Poor quality of village road was noted. From offered issues of concern respondents noted following in the order of decrease: - safety of transportation means; - poor technical condition of the road; - lack of lighting at night; - high cost of transportation tariffs

Regarding environment condition, respondents noted the followings: - high air dustiness - spontaneous solid waste landfills outside the village - there's not enough planting

However, most of respondents noted the positive impact of the project in Dossor village: - the village appearance will change. - pollution and dustiness will decrease significantly - road accidents will be reduced - local workable population will be involved in the project.

The respondents listed the following problems of village: - spontaneous taxi parking has an impact on safety of schoolchildren and children; - taxi drivers exceed the speed limit.

In general, the survey showed that the population has a positive perception for the construction of

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Dossor Bypass Way.

Summary of survey results conducted on March 17, 2020:

Process: The survey was conducted in Dossor village, respondents were chosen randomly in the village akimat among visitors, private café, walkers on the street. Totally 8 respondents and owner of roadside cafe were interviewed. 4 men and 5 women. Among men: 3 pensioners and 1 worker. Among women: 3 workers, 1 temporarily unemployed for childcare and 1 business owner. Survey content: respondents said that they are informed about the forthcoming construction of Dossor Bypass Way. They assess this project positively as it will solve a number of village problems. In particular, traffic safety, as there is heavy traffic passing through the village. There are also problems with air pollution, noise and dust pollution from traffic. The café owner noted that the construction will not affect her business, as the café is located in a place where heavy vehicles can not turn. And these drivers are not her clients. She assesses the bypass way construction positively, as there is traffic jam in the village for a long time, the microclimate of the village is disturbed. The respondent noted that they had previously addressed the deputy with this problem to change heavy traffic outside the village. They also wrote to the akimat and verbally raised the issue during the Akim’s report. From offered issues of concern respondents noted following in the order of decrease: - safety of transportation means; - poor technical condition of the road; - long waiting time for transport; - lack of lighting along the road

f. Traffic monitoring inside of Dossor village during 30 minutes of monitoring conducted on March 17 from 11:00 to 11:30, the following vehicles passed the village road: 23 heavy vehicles, 2 vehicles with cart, 2 motorcycles, 35 cars.

(II) Project location The beginning of the projected road PK 0+00, which is PK 3862+77,41 of “Atyrau – Aktobe” road and the end of the road PK 55+20,07, which is PK 7992+00.43 of “Kulsary-Dossor” road, pass through the territory of Makat district of Atyrau region. In order to prepare the working design, inspections and topographic survey of site were carried out. “Dossor Bypass Way” passes through an open area and intersects salt sections from PK18+60 to PK21+70, from PK36+76 to PK38+97 and from PK47+30 to PK48+10.00 and connects republic importance road and has parameters of II technical category. Any loss of private trees or other plantings was not detected. Most section of road passes through semi- desert and flat areas, plant is very scanty. There is no loss of municipal trees within the existing right- of-way. At the moment the project land has been developed by the State Act and it is fully ready for the commencement of construction works.

(III) Land acquisition Pursuant to the road project in 2019, there was the decree of Makat district akimat about land acquisition for permanent use, according to which there is only state land reserve under acquisition and have been received state act No.001734 for the right of permanent land use of 23,200 ha land, cadastral number 04-064-007-2482 for the construction of bypass way to Dossor and it was registered on September 10, 2019 No.590 by Makat district Department on land cadastre and real estate. Documents are provided in the Attachment 2. Due to the implementation of Dossor Bypass Way construction project, one legal entity would be insignificantly impacted, that one has commercial failure at the time of preparation of this report. The insignificant impact is not associated with land acquisition, the bypass section passes 20 meters away from the coordinates of the base of this legal entity. The design institute provided an access road, which was also agreed with it. The bankruptcy manager was notified about the planned works at the close area to the legal entity’s base by a letter and was invited to public consultation held on October 9, 2019 in Akimat of Dossor village. An invitation letter and a response to it are provided in the Attachment 3. On 17.03.2020, a working meeting was with Tazhibayeva A., Chief specialist of municipal services of Dossor Akimat, Makat district of Atyrau region about the newly emerged circumstances of land allocation, newly appeared owners and project changes from October 2019. This specialist noted that

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there are no new circumstances. There is no change as it was declared earlier by the designer and Dossor Akimat.

(IV) Complaints As of the survey date, there were no outstanding complaints, which was confirmed during interviews with local authorities, as well as during public hearings held in August and October 2019, and also during public consultations in March 2020.

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ATTACHMENT 2

Abstract from Minutes of Land commission No.8 dated July 5, 2019 7. About the request of “Committee for Roads of Ministry of industry and infrastructural development” regarding land allocation Having reviewed the request and documents, the commission concluded as follow: To provide a positive conclusion for the request of “Committee for Roads of Ministry of industry and infrastructural development” regarding allocation of 5,8 ha land from the entrance to Dossor up to junction of Dossor – Kulsary road in order to construct bypass way to Dossor and to granting the right of permanent land use. District land relations, architecture and urban development department is instructed to ensure the obtaining of necessary agreements for land allocation.

Head of District land relations, architecture and urban development, member of commission //signature and stamp// S.Tukeshov

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Pleminary choosing of land to construct bypass way

Act No. 129

Makat district 10.07.2019

Employer: “NC “KazAutoZhol” JSC Address: Atyrau city Location of land to be inspected: from the entrance to Dossor up to junction of Dossor – Kulsary road Land area - 5,8 km Land characteristics: ______Topographic survey: Main conditions:

A g r e e d:

District land relations, architecture and urban //signature and stamp// development department

Dossor Akim’s office //signature and stamp//

“State corperation “Government for citizens” //signature and stamp// non-commercial joint-stock company Atyrau regional branch, Makat district land cadastral and real estate department “Atyrau Zharyk” power supply organization //signature and stamp//

District telecommunication lines organization //signature and stamp//

“Kazakhtelecom” JSC //signature and stamp//

“KazTransGazAimak” JSC //signature and stamp// Atyrau branch, Makat gas establishment “Atyrau Su Arnasy” //signature//

“District housing and communal services, passenger //signature and stamp// transport and road department” Employer //signature and stamp//

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Makat district Akimat, Atyrau region

DECREE September 03, 2019 No.146

About land allotment and granting the right of permanent land use to “the Committee for Roads of Ministry of industry and infrastructural development”

Pursuant to clauses 17, 43, 44 of Land Code of the Republic of Kazakhstan No.442 dated June 20, 2009 and clauses 31, 37 of “About local government and self-government” Law of the Republic of Kazakhstan No.148 dated January 23, 2001, also based on Minutes of Land commission No.8 dated July 5, 2019 and land arrangement plan, District Akimat ORDERS: 1. To allocate 23,20 ha land from the entrance to Dossor up to junction of Dossor – Kulsary road for “the Committee for Roads of Ministry of industry and infrastructural development” in order to construct bypass way to Dossor and to grant the right of permanent land use. 2. Land will not be divided, it is prohibited in order to protect engineering utilities area. 3. To inform “the Committee for Roads of Ministry of industry and infrastructural development” not later than 6 months after adoption of this decree to apply to “State corperation “Government for citizens” non-commercial joint-stock company, Atyrau regional branch, Makat district land cadastral and real estate department in order to register the right of permanent land use. 4. Control over the execution of this decree is assigned to district deputy akim T.Nurpeisov.

District Akim //stamp// Zh.Karagayev

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No.001734 Land plot plan

Land plot location, registration code (if available): Atyrau region, Makat district, from the entrance to Dossor up to junction of Dossor – Kulsary road.

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Other land plots within the plan boundary

Cadastral number pf other land plots within the Plan No. Area, hectare plan boundaries no

This act is prepared by “State corperation “Government for citizens” non- commercial joint-stock company, Atyrau regional branch, Makat district land cadastral and real estate department

Place for stamp //signature and stamp// Kuanyshev M.

September 10, 2019

The issue of this act is recorded in the Record book of acts for land ownership right, land use right by No.590. Attachment: list of land plots with special use purpose within land plot boundaries (if available) – no Note: * Description of neighboring plots is valid at land identification document preparation time.

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No. 001734

Cadastral number of land plot: 04-064-007-2482 The right of permanent land use Land area: 23.200 ha Road category: village (city, community and rural area) road Land plot purpose: for the construction of Dossor Bypass Way Restriction on the use and encumbrance of land plot: to protect engineering utilities area Divisibility of land plot: indivisible

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ATTACHMENT 3

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“InjenerProjectStroy” Limited Liability Partnership

Ref. No. 205 October 07, 2019

To the bankruptcy manager “DANK scientific-industrial firm” LLP Mr. N.K.Zhuandyk [email protected]

According to minutes of meeting chaired by the President of the Republic of Kazakhstan K.K.Tokayev on June 4, 2019 (No.19-01-7.22 dated 04.06.2019), one of the development direction of Atyrau region – republic importance road of region “Atyrau-Uralsk-Aktobe-Makat-Mukur-Kulsary”, related to it as the project and estimate documents have been prepared for Dossor Bypass Way, we send a letter to know if you agree for access road to “Special production base” near to Dossor village and you are requested to submit full information.

Director //signature and stamp// M.O.Torebalayev

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“InjenerProjectStroy” Limited Liability Partnership

Ref. No. 206 October 07, 2019

To the bankruptcy manager “DANK scientific-industrial firm” LLP Mr. N.K.Zhuandyk [email protected]

In addition to our letter No.205 dated 07.10.2019: According to minutes of meeting chaired by the President of the Republic of Kazakhstan K.K.Tokayev on June 4, 2019 (No.19-01-7.22 dated 04.06.2019), one of the development direction of Atyrau region – republic importance road of region “Atyrau-Uralsk-Aktobe-Makat-Mukur-Kulsary”, related to it regarding “Dossor Bypass Way” project there will be Public consultations in Dossor village, G.Suleimenov street, administrative building No.100 on 09.10.2019 at 3 o’clock p.m., if you have any proposals for this project please attend.

Director //signature and stamp// M.O.Torebalayev

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“DANK” scientific-industrial firm

Ref. No. 1392 October 09, 2019

“InjenerProjectStroy” LLP

As response to your letter No.205 dated 07.10.2019 the bankruptcy manager Zhuandyk N.K. of “Dank” LLP, working based on the decision of Almaty city Specialized economic court dated 19.09.2018 and the order of Almaty city State revenue department No.1085-P dated 12.10.2018, informs the following:

We agree for access road to “Special production base” of “Dank” LLP near to Dossor village and we can not attend on the forthcoming meeting.

“Dank” LLP bankruptcy manager //signature and stamp// Zhuandyk N.K.

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ATTACHMENT 4 Протокол пред общественных слушаний (общественные консультации перед слушаниями)

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Pre-public consultations (public consultations before hearings)

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43

44

45

46

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ATTACHMENT 5

48

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Public consultations

Due to the preparation of design documents for the road construction project Dossor bypass way, Makat district, Atyrau region, there will be the public consultations by the consent of region and village people, responsible organizations and akimat. In this regard you can offer your proposals and ask your questions. Time: August 16, 2019 3.00 p.m. o’clock Venue: Dossor village, 100 G.Suleimenova street, Akimat building, conference hall.

Organizer: “InjenerProjectStroy” LLP

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Public consultations

Advertisement

Due to the preparation of design documents for the road construction project Dossor bypass way, Makat district, Atyrau region, there will be the public consultations by the consent of region and village people, responsible organizations and akimat. In this regard you can offer your proposals and ask your questions.

Time: August 16, 2019 3.00 p.m. o’clock

Venue: Dossor village, 100 G.Suleimenova street, Akimat building, conference hall.

Organizer: “InjenerProjectStroy” LLP

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ATTACHMENT 6

Pre-public consultations, presentation of the Place of the public consultations, project, August 16, 2019 Akimat of Dossor village

During the discussion with villagers about The Designer is answering for the questions of location of cattle pass and culverts, villagers, August 16, 2019 August 16, 2019

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Public consultations, October 10, 2019 Presentation of the project during the public consultations, October 10, 2019

Villagers are reviewing the project materials, Consultations for villagers, October 10, 2019 October 10, 2019

Working meeting in “NC “KazAutoZhol” JSC Atyrau regional branch, March 2020

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ATTACHMENT 7

Grievance registration form

Source: Guideline on grievance redress mechanism on environment and social safeguards for road sector projects, 2014 TA-7566 REG: Strengthening and Use of Country safeguard systems – Community consultation and grievance redress mechanism.

GRIEVANCE REGISTRATION FORM

CONTACT INFORMATION Name: Gender: □ Male / □ Female

Address:

Village: Telephone:

District and Region: E-mail:

Anonymous grievance: □ Yes / □ No Preferred mode of communication for feedback: □ Mail / □ Phone / □ E-mail DESCRIPTION OF GRIEVANCE / SUGGESTION / QUESTION Please provide details (who, what, where, when) of your grievance below:

In case any other actions were undertaken by the complainant with respect to the grievance case, please provide details on past actions (if any):

Please provide details on your suggested resolution for grievance:

GRIEVANCE REGISTRATION DETAILS Name of registrant:

Organization: Position:

How the grievance was lodged: □ in person / Type of grievance: □ mail / □ e-mail / □ phone / □ fax / □______□ type A / □ type B / □ type C

Documents attached: Grievance is relevant to project: □ Yes / □ No if “No” it was forwarded to: ______

Remarks:

Signature of registrant: Date of grievance:

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Grievance coordination center

Concerned individuals can visit, call or send a letter or fax to GRC at the regional level for Atyrau region.

GRC contact details on Atyrau region (regional level) “NC “KazAutoZhol” JSC Atyrau regional branch Address: 5 Isatay street, Atyrau Phone: 8 (7122) 29 - 06 -75, Fax: 8 (7122) 29- 06 - 75, E-mail: [email protected]

Akimat of Dossor village Address: Makat district, Dossor village 100 Suleimenov street

At the central level the key persons are: I) Head of GRC: Taenova R. – Director of Project expertise department; II) Coordinator of GRC: Ibrayeva D. - Chief Specialist of Project expertise department.

GRC contact details (central level)

Address: 32/1 Kabanbay Batyr avenue, Nus-sultan, 010000, Kazakhstan, Committee for Roads, Ministry of investments and infrastructural development of the Republic of Kazakhstan, phone: +7 (7172) 75-46-41 E-mail: [email protected]

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